Insolvency and Bankruptcy Code

IBC

Advanced Level India Regulatory & Compliance 2 views

Definition

A unified framework for resolving insolvency of companies and individuals in a time-bound manner.

Detailed Explanation

Enacted in 2016, IBC provides 180-day resolution period (extendable to 330 days). NCLT handles corporate cases. Creditors can initiate proceedings. It replaced multiple overlapping laws.

Example

Essar Steel's resolution through IBC resulted in ₹42,000 crore recovery for creditors.

Local Context (India)

IBC has significantly improved India's ease of doing business ranking.

Related Terms